Appellate Tribunal Overturns Denial of Cenvat Credit

The impugned order denying cenvat credit due to the head office not being registered as an Input Service Distributor (ISD) was set aside by the Appellate Tribunal CESTAT NEW DELHI. The Tribunal ruled in favor of the appellant, citing a decision of the Hon'ble Gujarat High Court that contradicted its previous decision. As the issue had been settled by the Gujarat High Court and followed by the Tribunal, both appeals were allowed with consequential relief.

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Issues involved: Denial of cenvat credit due to head office not being registered as ISD.

Analysis:
1. The appeals before the Appellate Tribunal CESTAT NEW DELHI were disposed of by a common order as they arose from the same impugned order passed by the Commissioner (Appeals), and the issue involved was identical.

2. The appellants, engaged in manufacturing high chrome grinding media balls and alloy steel castings, were denied cenvat credit for duty on input services due to their head office not being registered as an Input Service Distributor (ISD). This denial was based on the Tribunal's decision in a previous case. However, the appellant's advocate cited a decision of the Hon'ble Gujarat High Court in a different case, which contradicted the Tribunal's decision. The Tribunal had also followed the Gujarat High Court's decision in another case.

3. Given that the issue had been settled by the Hon'ble Gujarat High Court and was followed by the Tribunal, the Member (Judicial) found that the matter was no longer res integra and was in favor of the appellant. Consequently, the impugned order was set aside, and both appeals were allowed with consequential relief.

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